Jan 22, 2019

Cayman Finance Breakfast Remarks

Jan 22, 2019

Cayman Finance Breakfast Remarks

Good morning,

I will lie and say that it is great to be in New York City this time of year… but I will also go on to be truthful and say that the cold weather notwithstanding it is indeed good to be with you at this Cayman Finance New York Breakfast Seminar as we embark on another New Year filled with exciting possibilities.

Whilst 2019 certainly offers opportunities it has begun with challenges, much of which are political in nature. Here in the USA the Government shutdown comes to mind while in the UK Brexit is looming with no agreed plan. In the Cayman Islands a key issue for us is the European Union Listing process and the focus on financial services jurisdictions demonstrating that there is substantial economic substance behind the business done there. We are up to the challenge. Many of you who have done business through the Cayman Islands for many years know that we have grown from strength to strength despite the challenges posed by moving goal posts and evolving standards.

The great statesman and UK Prime Minister, Winston Churchill, is reported to have said that “a pessimist sees the difficulty in every opportunity whilst an optimist sees the opportunity in every difficulty”. Seizing the opportunity inherent in difficulties has seen the Cayman Islands transform itself over the course of the past 50 years into a premier international financial centre, and in the process helped transform the way that legitimate business is done globally.

We have shown that we are ready and willing to not only fight to keep the thriving business and economy that we enjoy now, but to also adapt to new emerging trends, keenly conscious that many of these trends are driven by geopolitical considerations.

Some Governments, particularly in Europe, have a difficult time understanding how a country like mine can be so successful without a regime of direct taxation. They see a country with very low unemployment, good budget surpluses, low public debt, modern infrastructure, a Moody’s Investment Credit Rating of Aa3 and a steadily growing economy. They see all this and no direct tax and conclude that something must be wrong - for the concept of no direct taxation is antithetical to their belief system.

They mulishly ignore the reality that our financial services business regime is attractive to companies because of our proximity to the United States, our tax neutrality, a broad cadre of financial services expertise, and because of our adherence to international standards with respect to global transparency and the fight against money-laundering and cross border financial crime.

While businesses domiciled in the Cayman Islands do not pay direct taxes to our jurisdiction, our laws and regulations ensure that the taxes owed to those home jurisdictions are paid. As the international standards continue to evolve, we are committed to adhering to them, providing they represent a truly a global standard.

And so just last month my Government, in consultation with the financial services industry, spearheaded new economic substance rules and legislation in our efforts to meet the requirements of the European Union and the OECD. And we spent the last week in London, Brussels, Berlin and Paris where we had 13 meetings with representatives of the EU, including the Commission and the Code of Conduct Group, and with representatives of various EU member states, including Germany and France.

We wanted to ensure that the EU Commission and member states understand that Cayman is meeting the commitments we made and to provide opportunities for them to raise any remaining concerns. Conversations were professional and frank, and mostly positive.

While the European Union has not yet determined what jurisdictions will be placed on a final list of non-compliant tax jurisdictions, we remain positive that, given all that we have done, if the process is fair the Cayman Islands will not be on any such list.

While we are doing all that we can to comply with global regulation and to remain the jurisdiction of choice for financial services, we also certainly see opportunities for us in the UK’s Global Britain initiative.

We are therefore establishing a new Ministry of International Trade and Investment to better coordinate our work in promoting the Cayman Islands overseas, and with the assistance of the United Kingdom we have begun the process to establish our own Asia Office, based in Hong Kong.

We are positioning our Islands to take the best advantage of whatever new relationship eventually emerges between the UK and the EU.

So, in short, my message is that despite challenges the Cayman Islands remains bullish about the prospects of financial services business in the jurisdiction and are gearing up for opportunities that the uncertainties of the future will present.

If you are already doing business with us in the Cayman Islands, I thank you for your support and confidence in us. If you aren’t already operating from our shores, I invite you to come to Cayman and explore the awesome possibilities that await you.

Thank you for your kind attention this morning and again, I am pleased to be here with you in this fabulous city.

Mar 12, 2018

Welcome New Governor

Mar 12, 2018

Welcome New Governor

Dec 10, 2017

Annual Seniors Christmas Party

Dec 10, 2017

Annual Seniors Christmas Party

On Sunday The Progressives gathered for the Annual Seniors Christmas Party.

Nov 23, 2017

2017 Fundraiser

Nov 23, 2017

2017 Fundraiser

They say that art decorates space and music decorates time - well the best of both worlds came together on Wednesday night for the annual Progressives' Fundraiser!

Have a look through our photos:

May 23, 2017

Cayman Brac/Little Cayman Public Meeting

May 23, 2017

Cayman Brac/Little Cayman Public Meeting

Juliana and Moses would like to invite YOU to a Public Meeting!

Where: Kirkconnell Supermarket, Stake Bay

When: Tuesday, 23 May, 7:00 P.M.

Refreshments served!

#CAYMANISLANDSSTRONG

May 22, 2017

Maxine Bodden Robinson Meet & Greet

May 22, 2017

Maxine Bodden Robinson Meet & Greet

Come meet YOUR candidate for Bodden Town West!

Where: Kurt Tibbetts Yard, 419 Northward Road

When: Monday, 22 May, 7:30 P.M.

Refreshments served!

#CAYMANSTRONG

May 22, 2017

Cayman Brac West & Little Cayman/ Cayman Bra...

May 22, 2017

Cayman Brac West & Little Cayman/ Cayman Brac East Public Meeting

Don't miss your chance to meet Moses and Juliana!

Where: Mrs Ann Walton's Residence Spot Bay

When: Monday, 22 May, 7:00 P.M.

Refreshments served!

#CAYMANISLANDSSTRONG

May 22, 2017

ED CHISHOLM COMMUNITY MEETING

May 22, 2017

ED CHISHOLM COMMUNITY MEETING

Edward Chisholm wants to hear from you!

Where: Chisholms Supermarket Parking Lot

When: Monday, 22 May, 7:30 P.M.

Refreshments served!

#CAYMANSTRONG

May 19, 2017

Alden McLaughlin Meet & Greet

May 19, 2017

Alden McLaughlin Meet & Greet

Meet YOUR Premier Hon. Alden McLaughlin!

Where: The Sailing Club, 320 Spinnaker Road, Red Bay

When: Friday, 19 May, 7:00 P.M.

Refreshments served!

#CAYMANSTRONG

May 18, 2017

Cayman Brac West & Little Cayman/Cayman Brac...

May 18, 2017

Cayman Brac West & Little Cayman/Cayman Brac Public Meeting

Join Moses and Juliana for a Public Meeting!

Where: Mrs. Meriel Ritch Store, Spot Bay

When: Thursday, 18 May, 7:00 P.M.

Refreshments served!

#CAYMANISLANDSSTRONG

May 17, 2017

GT Area Meeting (GT North, GT Central)

May 17, 2017

GT Area Meeting (GT North, GT Central)

Wednesday 17th May

Joseph Hew & Marco Archer Area Meeting

George Town North and Central

Kirk Home Centre Parking Lot - Eastern Avenue

7:30 pm

Refreshments

May 16, 2017

Meet & Greet Alden McLaughlin

May 16, 2017

Meet & Greet Alden McLaughlin

Tuesday 16th May

Meet & Greet

Alden McLaughlin

Loretta Ramoon's house

284 Victory Avenue

7:00 pm

Refreshments

May 16, 2017

GT Area Meeting

May 16, 2017

GT Area Meeting

Please join George Town Progressives candidates Barbara Conolly, David Wight and Roy McTaggart to hear what they have planned for YOU in the next 4 years.

Apr 11, 2016

CAYMAN, UK TO ENHANCE SHARING OF BENEFICIAL ...

Good morning and thank you for joining us today.
Before we begin, on behalf of the entire Government and the Progressives I offer condolences to th...

Apr 11, 2016

CAYMAN, UK TO ENHANCE SHARING OF BENEFICIAL OWNERSHIP INFORMATION

Press Conference

By Premier Hon. Alden McLaughlin, MBE, JP, MLA

11 AM, Monday 11 April, 2016

Good morning and thank you for joining us today.

Before we begin, on behalf of the entire Government and the Progressives I offer condolences to the Leader of the Opposition, the Hon. McKeeva Bush and his family on the passing of his mother Ms Faith after a long illness. The loss of one’s mother is certainly profound and something with which many of us, including myself, are regrettably familiar. Our thoughts, prayers and considerations are with Mr. Bush and his family during this very difficult time.

This morning I must also make apologies for Financial Services Minister Hon. Wayne Panton who is out of the country attending the RIMS Conference with the Insurance Managers Association of Cayman.

We are here today to update you regarding the results of discussions concerning beneficial ownership between the Cayman Islands and the United Kingdom. I want to thank the Minister for Financial Services, his Chief Officer and Ministry staff for all the hard work they have committed to this effort. I also wish to thank the UK Government officials and the UK Government for their work and for acknowledging what the Cayman Islands has done regarding beneficial ownership and our consistent cooperation in the fight against serious crime.

Today I am pleased to announce that following months of discussions the Cayman Islands and the United Kingdom have signed an agreement on the enhanced sharing of beneficial ownership information – an agreement that the UK Prime Minister announced minutes ago in the House of Commons.

This agreement adds to the number of commitments that Cayman has made previously, all of which build on our capacity to engage in the global fight against serious crimes. This agreement is reciprocal and holds the UK to the same standards in cases where our law enforcement officials may need information on companies incorporated in the UK.

This agreement confirms that the Cayman Islands will implement, as we have said for some time, a central platform that will allow designated Cayman Islands officials to directly obtain and provide details of beneficial ownership of companies incorporated in Cayman to the UK, as required by law and treaty. As previously indicated this is not a central registry as beneficial ownership details will remain with the service providers managing them, but rather information will be accessed via a central technical platform. And it certainly will not be available publically or available directly by any UK or non-Cayman Islands agency.

I must tell you that these matters have occupied the Government for some time. It is part of the reason we cannot spend time in the Legislative Assembly this week.

Before I speak to this latest agreement, allow me to give you the background to our ongoing efforts and demonstrate that from the very beginning of this process we have remained clear, consistent, cooperative and committed:

Since 2013 – the year this Government took office – Cayman and the UK have been discussing the form in which the sharing of beneficial ownership information could take between our respective law enforcement and tax authorities. And from the moment the UK’s plans for a publicly accessible central register of beneficial ownership was raised during the run-up to the G8 summit in June of that year, we have been absolutely clear that we support the global fight against serious crimes, including tax evasion and corruption.

We have also been very clear and consistent in emphasising that we already have a robust system for sharing beneficial ownership information, which has been in place for more than 15 years – far longer than that of many countries, including many of the G20 economies and that of the UK.

As we have explained previously, Cayman’s laws require our corporate service providers to verify the beneficial owners of corporate and legal entities incorporated in the Cayman Islands. And perhaps there is no greater example of our consistency in maintaining the highest standards, cooperation with international partners and commitment to upholding global standards than the decades of engagement with international initiatives against serious crimes, including anti money-laundering and tax evasion, through our multiple mechanisms for exchanges of information on tax and beneficial ownership information.

While they have not received as much media attention in comparison with the cases of criminality, these mechanisms include tax information exchange agreements, the OECD’s Common Reporting Standard, the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, the European Union Savings Directive, US FATCA and specifically with the UK, a double tax arrangement and UK FATCA. In all, these mechanisms allow for the sharing of information with more than 90 jurisdictions, including the majority of the G20 countries.

These multiple mechanisms assist other countries with whom we partner in realising the full amount of taxes where they are due. Cayman takes these steps, which are wholly in support of other jurisdictions’ law enforcement and tax regimes, in order to ensure that criminals are not attracted to use our financial services system for illicit means. In other words, we don’t just acknowledge that there is a morality element in fighting global crime. We have been acting on it for years, before it became a global rallying cry.

Rather than allowing illegal activity to take place, then, Cayman’s record on transparency and global law enforcement cooperation is clear to anyone who is willing to recognise our efforts to collaborate globally with law enforcement and tax authorities in the fight against serious crime.

Speaking now of today’s announcement: Cayman’s beneficial ownership regime initially was not understood by our colleagues in the United Kingdom, particularly in light of their preference that we adopt a public, central register. While we always remained clear and consistent in our position during the ongoing discussions, and especially during meetings of the Joint Ministerial Council, it was not until there were several visits to Cayman by UK Ministers and Officials – some at our own request – that they appreciated that our regime already did what they are trying to do.

This all came to a head during the Joint Ministerial Council in December 2015, when it was finally acknowledged that beneficial ownership could be held in our respective jurisdictions via central registers or similarly effective systems such as Cayman’s proposed Central Platform. This marked a significant development in the discussions. It was during these discussions that we invited a visit by the Foreign Commonwealth Office and the National Crimes Agency to Cayman to meet with technocrats and industry and to obtain a fuller understanding of the business that we do.

We know that our planned enhancements to our beneficial ownership information regime are both appropriate for our jurisdiction and moreover – and please allow me to underscore this, because I don’t want it to be overlooked – our enhancements are in line with global standards and the UK’s own position. This is why throughout these discussions we have remained consistent in pointing out that there is no need to adopt any other system. I am glad and proud that our perseverance has finally paid off.

Following the visit at our invitation by the Foreign and Commonwealth Office and National Crime Agency in late February, the Ministry of Financial Services has been negotiating an Exchange of Notes with the UK. This document, along with a Technical Protocol, reaffirms the mutual collaboration between law enforcement and tax authorities in the UK and the Cayman islands; and outlines several operational parameters to this cooperation that will improve the relationship between the relevant authorities.

I acknowledge that these negotiations and indeed the entire process, which began in 2013 has been difficult and complex, but again, it’s the outcome that’s important: The UK has recognised that our system of enhancements meets their criteria for the sharing of information; meets global standards; and is best for this jurisdiction.

It is somewhat ironic that last week’s Panama Papers leak has brought into focus the importance of a global standard in addressing matters of serious crime and tax evasion. Our record shows that Cayman has consistently been cooperative and committed to supporting the implementation of international standards.

Regrettably, despite Cayman’s efforts and clear record, there are those who will look to lump us into the same bucket as places that do not do what we do. Political pressure, combined with influence from some NGOs and the media, continue to wrongly brand Cayman as uncooperative and a part of the problem.

This negative context, however, underscores the significance of today’s announcement of a mutually beneficial agreement with the United Kingdom on the enhanced sharing of beneficial ownership information. In his announcement today of this agreement, PM Cameron said that the Cayman Islands, and our fellow Overseas Territories and Crown Dependencies, are now ahead of many other jurisdictions in relation to the sharing of beneficial ownership information among law enforcement and tax authorities.

To emphasise, the Exchange of Notes and Technical Protocol outline our partnership in the global fight against serious crimes. Importantly, they also recognise that Cayman does not have to go the route of creating a central register. It is a fact that the majority of jurisdictions around the world do not have central registers, and some of these jurisdictions have recently been assessed as compliant with international standards.

The global standard will be ever evolving, as it should be. Some things that may have been acceptable in days gone by are no longer so; and as should be anticipated in matters of serious crime, criminals will always seek to keep one step ahead of the game. For our part, the Cayman Islands will continue to be clear, consistent, cooperative and committed in being part of the solution.

Statement and Potential Q&As Chief Officer, Dr Dax Basdeo

Last week the Ministry issued a statement referring to two sets of work in relation to the sharing of beneficial ownership information.

The first set commenced in September 2015, when work began on a series of enhancements to further strengthen Cayman’s legislative and regulatory framework.

The second set commenced this past February, when Cayman and the UK began negotiating the Exchange of Notes and Technical Protocol. These negotiations were initiated in relation to the UK’s request for Cayman to either establish a public, central register; or to prove that its proposed enhancements to its framework would provide a similarly effective system.

Now, with the Premier’s signing last Friday, the 8th of April, of the notes and the protocol, Cayman and the UK agree that Cayman’s proposal to enhance its system, by establishing a centralised platform of non-public beneficial ownership information, will indeed provide a similarly effective system for the sharing of information.

For clarity, the Exchange of Notes states the nature of the agreement between Cayman and the UK. In addition to noting both parties’ continuing commitment to global initiatives against serious crime and reaffirming the quality of the information, it outlines the parameters for our enhanced collaboration. These include that the competent authorities in both countries should be able to quickly identify all companies that a particular beneficial owner has a stake in, and that companies or their beneficial owners must not be alerted to the fact that a law enforcement or tax authority investigation is under way.

The Technical Protocol complements the Exchange of Notes, in that it further details the obligations of the participants – for example, response times; the process for amending the protocol; and importantly, the monitoring of the practical application of this agreement.

Getting to this point of agreement has required significant time and effort.

Government has often said that the Ministry of Financial Services works closely with industry to facilitate the sharing of beneficial ownership information with partner jurisdictions, and that we have done so for many years. However, to provide a quick timeline, this engagement took on a different focus in 2013, when the UK made the sharing of beneficial ownership information a key element of the agenda as part of its presidency of the G8, and said that a public, central register was its preferred approach to accomplishing this.

The following year, in 2014, we conducted a consultation exercise to determine the views of industry, regulators, and the general public, both locally and internationally, on the sharing of this

information. The response clearly showed that our present regime is adequate to meet international standards, but that several enhancements were appropriate to ensure that we kept in line with these evolving standards.

In response to the consultation, much work was done in early 2015 by the Ministry and its stakeholders to develop Cayman’s strategy for enhancing our system. We were encouraged to do so in part by the UK’s recognition in March 2015 that there are similarly effective arrangements to their approach of a public, central register.

In September 2015 the Ministry established a working group, which included representatives from industry, to delve into the specific details of amendments to the relevant laws that provide the framework for our regime. The working group has focused specifically on the international standards as expressed by the Financial Action Task Force Recommendations, and the recent changes to this standard.

Throughout the Working Group’s process, as discussions with the UK continued, Cayman considered how to accomplish three distinct objectives: One, alignment with global regulatory standards; two, robustness to support the jurisdictions that have joined or are joining the fight against serious crimes; and three, appropriateness for our jurisdiction. This last point, appropriateness for Cayman, means that we understandably and rightfully took into account the fact that our business model consists primarily of institutional clients.

This is important to note because, in developing our framework, we must account for the set of risks that are relevant to Cayman and our clients. Although it’s obvious, it’s worth acknowledging that there are many different business models among the many jurisdictions that participate in global finance.

Precisely for this reason the FATF standards cannot be, and therefore are not, prescriptive. It is more effective for these standards to express the principles to which all jurisdictions should adhere, which allows each jurisdiction to meet these principles while developing the framework that is appropriate for its particular regime.

That said, a milestone in our discussions occurred in February this year, when the Ministry provided a demonstration of the concept of a centralised platform for beneficial ownership information to senior officials from the Foreign and Commonwealth Office and the UK’s National Crime Agency. This satisfied the UK officials that Cayman’s enhanced system would indeed be equivalent to their system; and this resulted in the negotiations of the Exchange of Notes and Technical Protocol. As we informed the public

last week, the UK has negotiated similar Exchanges of Notes and Technical Protocols with each Overseas Territory and Crown Dependency.

Now that Cayman and the UK have signed our agreement, the working group’s main task is to complete the design of the enhancements. We expect that the final report of the group will be ready in the next two to three weeks, and it is the Ministry’s intention to solicit the wider views of our industry on the proposed enhancements.

It’s been three years since the G8 Summit, and during this time Cayman, the UK, the CDs and our fellow OTs have invested significant time, energy and effort on this subject. Far from a delayed response, the time spent was necessary to reach understanding. For our part, once we had developed our proposals and demonstrated our system to the UK; and once they recognised that it met their criteria, the remaining negotiations happened rather quickly. The main complexity that we faced was the UK’s desire to have similarities in the agreement among the OTs and CDs.

Regarding the design of our centralised platform, we have been assured by several IT professionals that the concept can be made reality. Not only can we design and build the system, it is likely to be a key competitive advantage for our jurisdiction, as part of an e-business solution that will provide significant value to our clients in terms of convenience and responsiveness to their needs.

The Exchange of Notes and Technical Protocol recognise that Cayman’s proposals are both viable and effective. As the UK has given its support for our enhanced system, this should be taken as a positive signal by our international stakeholders, including media and NGOs, that the Cayman Islands is maintaining its commitment to international standards and to combatting serious crime through the exchange of information between law enforcement and tax authorities.

Dec 17, 2015

IRONWOOD AND CIG DEVELOPMENT AND CONCESSION ...

Ladies and Gentlemen, good morning and thank you for coming to this press briefing.
I am pleased to announce that Cabinet yesterday approved terms ...

Dec 17, 2015

IRONWOOD AND CIG DEVELOPMENT AND CONCESSION AGREEMENT

By Premier Hon. Alden McLaughlin, MBE, JP, MLA

Ladies and Gentlemen, good morning and thank you for coming to this press briefing.

I am pleased to announce that Cabinet yesterday approved terms for a Development and Concession Agreement between the Cayman Islands Government and Ironwood Cayman Ltd. This agreement is intended to facilitate the construction, development and operation of what will be known as Ironwood Village located off Frank Sound Road.

Just by way of a brief overview, the development will be constructed in phases and include a PGA championship golf course and resort designed by none other than golfing legend Arnold Palmer who I had the privilege of welcoming to Cayman previously, as some of you may remember. Incidentally, I’ve been informed that this course will be the first of its kind in the Caribbean.

The development will be similar to the Arnold Palmer Design Company’s world class property in Bay Hill, Florida, and includes a town centre, beach club, luxury hotel accommodations, watersports facilities and other amenities. Mr. David Moffitt of Ironwood Cayman and Mr. Roy Saunders, vice president of operations of the Arnold Palmer Design Company Ltd. will provide you with further details on the proposed development in a few moments. But for now, let me just say that the Government sees this project as one that will significantly reinforce the appeal of the Cayman Islands as a world class tourist destination.

As you are aware, the Government has been in negotiations with the Ironwood group for the construction of a 10-mile extension of the East-West Arterial for some time. These negotiations have proven to be extremely intense and challenging but the Government remains committed to working toward concluding an arrangement with the developer and ensuring that the terms of any such agreement will be in the best interests of the country and the people of these Islands.

Notwithstanding the delays in finalising an agreement for the construction of the road, Government and Ironwood have agreed that Ironwood will bring forward its plans for commencement of the development project itself. This will inevitably provide a much needed financial stimulus to the economy of the Cayman Islands and result in the creation of valuable job opportunities for Caymanians and further needed development in the Eastern Districts.

This Development and Concession Agreement will provide Ironwood with duty waivers and concessions on planning application fees, import duties and charges payable on all materials and equipment imported by Ironwood for the development, as well as on stamp duty payable on any land acquired for the development after the date of signing this agreement, up to a maximum concession value of 6 per cent up or a maximum of US$21.9 million dollars. The maximum waiver amount is based on Ironwood’s estimated project development costs of US$365 million dollars.

All duties and fees will be paid initially by the developer with Government refunding qualifying duties and fees in the form of an annual rebate once the developer has submitted its annual claim backed by satisfactory audited year-end accounts.

As many of you know, Government historically has entered into development concession agreements to incentivize development of specific major tourism related private sector capital projects such as the Kimpton Hotel and Beach Bay hotel and resort.

The most recent concessions were given to help Beach Bay develop and included duty waivers on construction materials and furniture and fixtures for the construction of the development and stamp duty for land purchased for the development. In that case Government will be giving up potential income of about $25 million to help ensure that project gets built.

But I must remind everyone that the income we receive for decades into the future from hotel room tax, visitor spend, duty from the sales of condos and more from all of these developments will more than make up for the concessions. And the jobs that will be created directly and indirectly from these projects will be an added economic benefit.

Both Government and Ironwood remain dedicated to the construction of the road extension so this agreement allows for a further maximum period of 12 months to conclude negotiations and obtain all appropriate consents including that required by the Foreign and Commonwealth Office in accordance with Government’s obligations under the Framework for Fiscal Responsibility.

If, as we all hope, negotiations for the road construction are successfully concluded within that 12 month time frame, then the concessions granted under this agreement will at that point in time be applied against certain financial guarantees that will be required to be provided by the developer as part of the road agreement.

In the event that the negotiations for the road construction are not brought to a satisfactory conclusion within that one year period, then Ironwood will continue to have the benefit of the concessions provided under this agreement for a maximum period of 8 years from the date of signing.

In keeping with this Government’s firm commitment to the creation of employment opportunities for Caymanians, the agreement requires Ironwood, its contractors and sub-contractors to work with the Cayman Islands Further Education Centre and the National Workforce Development Agency, and to endeavour to meet certain substantial hiring targets of Caymanians that we set in Cabinet. Ironwood will also be required to provide regular reports on its recruitment of Caymanians during the course of the development. In short, this Government sees this deal as a win-win for the country and the people of these Islands.